What You Need to Know About Need-Aware Colleges

Last Updated on April 29, 2024 by Jill Schwitzgebel

I often write about factors that colleges consider as they make admissions decisions. There is one factor that gets very little attention – financial need. Did you know that there are “need-blind” colleges, as well as “need-aware” colleges? Unfortunately, this is an aspect of the college admissions process that students have very little control over.

Being need-aware means that colleges will take students’ ability to pay tuition into consideration when they are making an admissions decision. As more colleges have begun to struggle financially to cover their costs, they are moving to this policy in increasing numbers. Sometimes this is also called being “need-sensitive”.

This sounds terrible, right?!

It’s actually not as bad it sounds. There are some nuances in the ways that colleges practice this policy, which can actually make it beneficial.

Benefits to Being Need-Aware

A need-aware policy can actually mean that students who are applying for financial aid will get a better aid package than under a need-blind policy. I’ve written previously about looking for colleges that will pledge to meet 100% of a family’s financial need. A college that meets full demonstrated need and is need-aware can ensure that they have the budget to offer enough aid to students, so that they do not have to “gap” them – leaving students with a tuition bill that they just cannot afford.

Without a huge endowment, a school that is need-blind will end up having to divvy up their financial aid funds among all of the accepted students. They choose to do this in various ways. Most public universities are in this situation – they are need-blind, but often do not have the funding to meet all of families’ financial need.

Many times, colleges that practice need-aware admissions only do so for a certain percentage of their classes. Usually, the majority of the class is accepted under a need-blind policy. Only a last percentage of the class is accepted using the need-aware policy. Again, that helps the college to be able to provide better financial aid packages for all students.

And, rest assured, I am not aware of any colleges that consider ability to pay BEFORE considering the whole applicant. Remember, their own reputation is at stake and they have a vested interest in admitting the strongest applicants to their class. Unqualified applicants are not receiving acceptances just based on their ability to pay full tuition. They still are evaluated based on their full application, including academic performance, tests, and extracurriculars. But yes, it can sometimes be an advantage for a student who can pay in full, who might be on the lower end of expected acceptance statistics.

In the United States, there are only about two dozen colleges that are truly need-blind AND that will also commit to meeting all of their students’ demonstrated financial need.  They are mostly private colleges.  And, there are even fewer that do not consider international applicants’ ability to pay.  In January 2022, a lawsuit alleged that some colleges claiming to be need-blind, are actually colluding with other colleges in order to limit student financial aid.

Finally, also keep in mind that colleges will usually offer their best financial aid packages to the applicants that they most want to have on campus. Being need-aware allows them to do that. This can also be a benefit to your student, if they are a strong applicant.

How Does This Policy Impact Your Applicant?

It can be very difficult to find out if the colleges your teen is interested in are need-blind. Generally, if there is no mention of it, they are not! Colleges don’t like to advertise the fact that they are need-aware. But, colleges that are need-blind often will promote that fact.

What this means is that you just need to be an informed consumer. This is just another factor to note as you put together a college list during your student’s junior year. It really should not change your strategy. Families always need to research to see just how much financial aid a college will guarantee. That is one of the major factors that should affect your college list.  And keep in mind that the college’s definition of your family’s financial need, may not align with yours.  

When I work with students, this is one reason it is important that I have an understanding of a family’s college financial plan. I can help families balance their list in a way that makes the most sense for them. It’s part of my job to make certain that they understand not just the academic fit, but the financial fit of each school.